Suppose Buyers of Vodka Are Required to Send $5

question 134

Multiple Choice

Suppose buyers of vodka are required to send $5.00 to the government for every bottle of vodka they buy.Further,suppose this tax causes the effective price received by sellers of vodka to fall by $3.00 per bottle.Which of the following statements is correct?

• A)This tax causes the demand curve for vodka to shift downward by $5.00 at each quantity of vodka.
• B)The price paid by buyers is $2.00 per bottle more than it was before the tax.
• C)Sixty percent of the burden of the tax falls on sellers.
• D)All of the above are correct.

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Definitions:

Nucleus

The membrane-bound organelle in a eukaryotic cell that contains the chromosomes and controls the cell's growth and reproduction.

Microtubules

Microtubules are cylindrical structures made of tubulin proteins, part of the cell's cytoskeleton, playing crucial roles in cell division, shape, and transport.

Cytoskeleton

A complex network of interlinking protein filaments and tubules in the cytoplasm of cells, giving them shape, coherence, and the ability to move.

Support

The action or role of bearing the weight or stress of something, or providing assistance and stability when needed.